Scott White Advisors – Financial Plannershttp://scottwhiteadvisors.com
Financial planningWed, 21 Feb 2018 18:46:13 +0000en-UShourly1https://wordpress.org/?v=4.9.4http://scottwhiteadvisors.com/wp-content/uploads/2017/10/cropped-SWAlogo-gold-foil-32x32.jpgScott White Advisors – Financial Plannershttp://scottwhiteadvisors.com
3232137773303Love and Financeshttp://scottwhiteadvisors.com/love-and-finances/
Wed, 21 Feb 2018 18:46:13 +0000http://scottwhiteadvisors.com/?p=4228LOVE AND FINANCES In the month of February most people are talking about love and romance. But what happens when February is over? What about those of us who talk about finances every month? Can there be an intersection of love and finances this month?Yes, we think so. Often times, money adds stress to relationships. […]

In the month of February most people are talking about love and romance. But what happens when February is over? What about those of us who talk about finances every month? Can there be an intersection of love and finances this month?Yes, we think so.

Often times, money adds stress to relationships. A survey by SunTrust Bank found money is the number one cause of stress in relationships, and according to a Kansas State University study having financial arguments is a top predictor of divorce.

Here at Scott White advisors we believe you can maintain relationship bliss if you are honest about financial health and wealth building goals. Here are a few financial conversations to consider regardless of your relationship status.

Just Dating: It may be fun to spoil your significant other with gifts. Doing so within reason will solidify a foundation of truth and responsibility while setting your relationship up for success. Taking the time and discipline to create an entertainment budget and sticking to it may not sound romantic. However, when you reduce arguments later in life you will likely have more romance. You should also look for signs of your partner not making good money decisions during this relationship stage,as this may be predictor of future habits. A conversation in the dating stage could reduce money arguments if the relationship progresses.

Living Together: This stage of a relationship can feel like marriage. Until there is a legal union, however, it is best to keep finances separate.Some couples opt for both paying a portion of the expenses, separating who is responsible for what bills or even creating a bill paying account that each person contributes to. The most important part is discussing as a couple what option works best and feels best to you both.

Engaged: What an exciting time in your relationship! If you haven’t spoken yet about protecting your futures, your past or your families, now is the time to discuss a prenup. We believe the earlier a couple begins to discuss the idea of a prenuptial agreement, the better. A prenuptial agreement doesn’t have to be the death toll for romance. If approached thoughtfully and with candor, it can actually lead to greater intimacy. Of course, prenuptial agreements aren’t for every couple, but they can be a wise financial plan.

It’s interesting to note that the total sum of someone’s wealth doesn’t necessarily correlate to his or her desire to protect it. Individuals can be more protective of a hard-earned $50,000 than an even larger sum inherited or acquired with relative ease. Check out our article on Understanding Prenuptials Agreements for details.

Married: Regardless of how well things have been going, you never know what is around the corner. Make sure you continue to stay connected about finances, from monthly bills to long-term investments. Even if one person tends to handle the details, the other spouse should check-in on a regular basis and account access details should be shared in a common place.

The theme in the above relationship statuses is communication – proactive communication. Talking openly and truthfully at every stage of your relationship builds trust and ensures that you are following the same financial game plan if financial turbulence arises. Including professionals in your legal, tax and financial planning can always help toward the most efficient way to reach your goals.

]]>4228A Duty to Care: My Fiduciary Standardhttp://scottwhiteadvisors.com/a-duty-to-care-my-fiduciary-standard/
Wed, 25 Oct 2017 18:12:52 +0000http://scottwhiteadvisors.com/?p=4199A Duty to Care: My Fiduciary Standard Fiduciary: A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets for the benefit of the other person rather than for his or her own profit. Some people are surprised to learn that not all financial advisors have fiduciary […]

Fiduciary: A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets for the benefit of the other person rather than for his or her own profit.

Some people are surprised to learn that not all financial advisors have fiduciary obligations to their clients. Advisors like me, who are Registered Investment Advisors, must avoid conflicts of interest and operate with full transparency. Under federal law, investment advisors are regulated by the Securities and Exchange Commission (SEC) or appropriate state authorities and are required to provide services to their customers under the fiduciary standard.

Other advisors, who are not RIAs, operate under the “suitability standard.” This means that they are merely required to ensure an investment is suitable for a client at the time of the investment. The President’s Council of Economic Advisers estimates that non-fiduciary advice costs Americans 1 percentage point of their return annually, which amounts to $17 billion each year.1

As a CERTIFIED FINANCIAL PLANNER, I ascribe to a fiduciary standard of care requiring that I act solely in the client’s best interest when offering personalized financial advice. CERTIFIED FINANCIAL PLANNER professionals providing financial planning services also must abide by the fiduciary standard, as defined by the CFP Board. Also, a fiduciary has a “duty to care” and must continually monitor not only a client’s investments, but also their changing financial situation.

According to the CFP Board, “Broker-dealers are also regulated under federal law, but are not required to provide services to their clients under the fiduciary standard of care. Instead, broker-dealers provide services under the “suitability standard of care,” which generally requires only the broker-dealer’s reasonable belief that any recommendation is suitable for the client. It is important to recognize that a financial recommendation that is “suitable” for a client (as legally required for broker-dealers) may or may not be a financial recommendation that is in the client’s best interest (as legally required for investment advisers).”

The CFP Board continues, “Consumers are harmed by the absence of a uniform fiduciary standard that applies to all financial professionals who provide personalized investment advice, from paying excessive fees and commissions to receiving substandard performance. Consumers are exposed to even greater and unnecessary risks from products that may be deemed suitable for them but are inferior to other available options and not necessarily in their best interests.”

Secretary of Labor Thomas Perez stated that “when it comes to financial advice, conflicts of interests can lead to bad advice and hidden fees that too often keep us from getting investment advice that’s in our best interest.” He continued, “This isn’t right, and we have an obligation to fix it. Consumers deserve to know that their advisor is working for them. Common-sense rules can protect investors and consumers, prevent abuse, and ensure that brokers and advisors provide advice that is in consumers’ best interests.”
Regardless what happens, I know that I take my fiduciary standard very seriously. My ‘duty to care’ is at the heart of every recommendation and decision I make on behalf of my clients, whose interests always come first.

]]>4199Choosing a Financial Planner: How to Select an Advisor to Help You Achieve Your Goalshttp://scottwhiteadvisors.com/choosing-a-financial-planner-how-to-select-an-advisor-to-help-you-achieve-your-goals/
Wed, 25 Oct 2017 18:08:22 +0000http://scottwhiteadvisors.com/?p=4194Choosing a Financial Planner: How to Select an Advisor to Help You Achieve Your Goals by A. Scott White, CFP®, ChFC, CLU President, Scott White Advisors What’s the first thing that comes to mind when you hear the words “financial planner?” A common response might be, “A professional who gives investment advice.” And that’s correct, […]

]]>Choosing a Financial Planner: How to Select an Advisor to Help You Achieve Your Goals

by A. Scott White, CFP®, ChFC, CLU
President, Scott White Advisors

What’s the first thing that comes to mind when you hear the words “financial planner?” A common response might be, “A professional who gives investment advice.” And that’s correct, but only partially, because it merely scratches the surface of what comprehensive financial planning involves. In fact, a true financial planner can advise you on all matters that affect your financial security.

Competent financial planners can create a comprehensive strategy to help you realize your financial goals. They will collaborate with your trusted advisors—attorneys, CPAs, and other professionals—to develop a seamless, thorough plan that incorporates all of the areas affecting your financial life.

A comprehensive financial plan should include more than just planning for your retirement, so you need to be sure your advisor offers a wide range of services. The right financial planner will guide you in asset diversification, investment planning and management, estate planning, charitable giving, trusts, and income tax planning. He or she can also assist you with IRA distributions insurance and long-term care planning. And once your plan is in place, your financial planner will provide systematic monitoring—combined with ongoing client communication—to plan for the unexpected and recommend changes when necessary.

To find a good financial planner, ask your CPA, tax attorney, or other advisors for recommendations in your area. Then review their credentials. Is he or she a Certified Financial Planner or hold designations such as Chartered Financial Consultant or Chartered Life Underwriter? After you’ve narrowed your choices, interview them.

During the interview process, some financial planners may ask questions about you, your family, and your financial situation. And you should ask your candidates about their investment philosophy and experience. Also, ask about their charges–are they fee-based, or transaction-driven? Keep your eyes open for possible conflicts of interest. Finally, are you comfortable with the planner’s personality? A suitable financial planner for you offers credentials, expertise, and an investment philosophy and personality that are compatible with yours.

Always remember, people—not financial institutions– manage your money and financial affairs. It’s vital, then, to choose a financial planner you are comfortable with to help guide you and your family toward financial success. A competent financial planner can be an important asset in assisting you with developing a solid financial plan, one that will give you confidence knowing your economic future is in good hands.

A. Scott White specializes in meeting the comprehensive financial and estate needs of high net worth families. He is a Certified Financial Planner, a Chartered Financial Consultant, a Chartered Life Underwriter, and holds a master’s degree in business administration. He served on the National Committee on Planned Giving’s Leave a Legacy committee. He is president of the Financial Planning Association Southwest Florida Chapter; past president of the Southwest Florida Chapter of the American Society of Financial Service Professionals; past president of the Lee County Estate Planning Council; and founding president of the Planned Giving Council of Lee County. For more information, visit http://scottwhiteadvisors.com/ Scott White Advisors is an independent Registered Investment Advisor and is located at 1510 Royal Palm Square Boulevard, Fort Myers, Florida 33919; telephone (239) 936-6300. Securities offered through Raymond James Financial Services, Inc., member, FINRA/SIPC.

]]>4194Retirement Transition: Living Your New Lifehttp://scottwhiteadvisors.com/retirement-transition-living-your-new-life/
Wed, 25 Oct 2017 18:04:43 +0000http://scottwhiteadvisors.com/?p=4191Retirement Transition: Living Your New Life After years of success in the workplace, you’re finally retiring. Your retirement has probably been carefully planned and anticipated, especially in the financial arena. During your working life, chances are you checked your retirement savings plan on occasion to determine its consistency with your long-term goals. Now that you’re […]

After years of success in the workplace, you’re finally retiring. Your retirement has probably been carefully planned and anticipated, especially in the financial arena. During your working life, chances are you checked your retirement savings plan on occasion to determine its consistency with your long-term goals. Now that you’re retired, the first five years will require ongoing evaluation and, potentially, adjustments.

Retirement (also known as the asset distribution phase) may be longer than you’d originally anticipated. Better healthcare and longer life spans mean you could spend up to one-third of your life enjoying retirement. As a result, your retirement portfolio will need to cover a longer time frame. To keep your retirement income flowing, it’s important to check your budget regularly (monthly or quarterly) to ensure you’re not overextending yourself. Being adaptable and flexible with your budget is vital to a successful retirement.

Another recommendation is to separate short- and long-term expenses. Making clear distinctions between needs and wants will also help prioritize spending. In addition, avoid acquiring new debt on purchases if you can save for the item instead. By saving for big-ticket items like new cars or major appliances, you keep your debt down and don’t risk compromising your standard of living. Finally, keep in mind that you may owe income taxes on pretax contributions and any earnings when you withdraw assets, depending on your type of retirement savings. As a result, you may not have as much money to spend as your withdrawal amount indicates.

Obviously, your goal is to ensure your retirement assets last for as long as you need them. Holding a percentage of your retirement savings in equities is one way to potentially reduce the risk that inflation will adversely impact your portfolio. Many financial experts advocate adjusting allocations–both before and after your retirement date. For example, equities may be 55 percent of your portfolio at age 65, and 35 percent at age 80. Another aspect to remember is the order of returns, not just their averages, and how that can affect the longevity of your retirement assets. If returns perform poorly during the initial period of your retirement, you could easily deplete your retirement savings.

Furthermore, you’ll want to anticipate unexpected events that could potentially impact your financial picture. If you discover your retirement “housing” is exceeding your budget, you can move to a place that is less expensive and easier to maintain. The profits from a sale can then be added to your reserves. You may also want to consider long-term care (LTC) insurance. LTC insurance helps cover nursing home costs or assisted living. The earlier you begin purchasing LTC insurance, the more reasonable the premiums.

Whatever your retirement plans, consulting with a knowledgeable professional like a Certified Financial Planner is a wise decision. An experienced professional can help you ensure your retirement meets your goals and desires—from initial investments to fine-tuning your finances during retirement.

Scott White is past president of the Financial Planning Association Southwest Florida Chapter. He is past president of the Southwest Florida Chapter of the American Society of Financial Service Professionals, past president of the Lee County Estate Planning Council, and founding president of the Planned Giving Council of Lee County. For more information, visit www.http://scottwhiteadvisors.com/ or call (239) 936-6300. Scott White Advisors is an independent Registered Investment Advisor and is located at 1510 Royal Palm Square Boulevard, Fort Myers, Florida 33919. Securities offered through Raymond James Financial Services, Inc., member, FINRA/SIPC.